Accelerated depreciation and industry-based tax incentives are nothing new from a tax policy perspective. First-year bonus depreciation, ranging from 30 to 100%, has existed in the federal tax code for over 20 years. Congress has also routinely stepped in to provide tax deductions or credits to specific industries. The One, Big, Beautiful Bill Act (OBBBA) continued this trend by permanently restoring 100% bonus depreciation (from 40% in 2025), expanding Section 179 expensing, and creating a new 100% deduction for qualified production property (QPP). This latter deduction expands the bonus depreciation concept to incentivize investments in new manufacturing and production facilities. In this article, learn more about how the QPP deduction is both a depreciation rule and an industry-aligned tax incentive.
Tax deductions drive manufacturers to revisit facility plans
New tax incentives could reshape manufacturing facility decisions. In our article with Tax Executive, our tax specialists examine how the new QPP deduction and expanded depreciation benefits may influence facility ownership and investment strategies.
